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What Is Network Centric Manufacturing (NCM)?

Network Centric Manufacturing (NCM) is a manufacturing supply chain management approach that integrates the smart design, rapid assembly and seamless coordination of dynamic supplier networks to accelerate production, reduce costs and mitigate risk.  By coordinating both the business and manufacturing processes at each tier of the production supply chain, NCM helps manufacturers in today’s distributed environment regain the efficiencies of single-facility production.

Addressing Root Causes

Many of today’s manufacturing  industry issues stem from the challenge to coordinate complex, geographically dispersed suppliers that use different software platforms, manufacturing processes, business processes—and even languages.  The lack of common systems or synchronized scheduling undermines on-time delivery, quality, and ultimately, profitability. Further, the disconnections across multiple supplier tiers can block the communication that enables innovation and cost control.

Connecting to Common Production Goals

NCM offers a different type of infrastructure for coordinating these distributed manufacturing supply chains. Comprised of standards, technologies and business processes, the NCM infrastructure allows supply chain participants to “plug in once” to securely connect to other participants and interact in mutually beneficial ways. As a result, the disparate tiers of the chain gain the capability to function as a dynamic supplier network.

Dynamic supplier networks provide a more effective framework for managing and contributing to distributed manufacturing supply chains. Unlike the rigid chains that are prevalent today, dynamic supplier networks deliver value to every tier by allowing real-time responses to real-time demands. Each supplier gains access to appropriate levels of information that help them satisfy their performance requirements, and the buyer gains opportunities to effectively control costs and manage risk.

Attributes that Improve Performance

The NCM infrastructure enables these dynamic supplier networks. Dynamic supplier networks have three key traits that are necessary for efficiency improvements and cost control in manufacturing supply chains.

  • Communicative
  • Coordinated
  • Agile

Communicative networks share information throughout the manufacturing supply chain, regardless of disparate systems.  All participants gain access to accurate and timely information, along with the ability to collaborate around that information, reduce cycle times and avoid costly mistakes.  Communication improvements are enabled by software-neutral viewers, technical data exchange standards and tools that facilitate and archive collaboration.

Coordinated networks permit supply chain participants to share production schedules and progress throughout the chain.  Knowing the status of work-in-progress provides an early warning system—helping increase efficiencies for downstream suppliers and the customer.  Coordination improvements are enabled by technologies that provide visibility into the manufacturing processes of the extended supply chain and a common master schedule.

Agile networks can easily be reconfigured from order-to-order with minimal cost and effort.  Whether responding to a change in market demand or the loss of a key supplier, agility helps minimize disruptions and maximize profits.  Agility improvements are enabled by the distribution of details about supply chain participants and their roles, common contract terms and outcome-oriented acquisition strategies.

NCM acknowledges that the manufacturing industry will continue to function with geographically distributed supply chains, but improvements to communication, coordination, and agility can offer a competitive edge to all buyers and suppliers in the chain.

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